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Married Allowance - Transferor

HMRC getting this wrong?

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Our client elected to transfer the marriage allowance to her spouse. Her earnings after the transfer were just above the personal allowance and gave rise to £20 income tax due.

HMRC have not reduced her personal allowance for the marriage allowance transfer so their revised SA tax calc shows no income tax due. Client has paid the amount we advised so HMRC are showing a £20 overpayment.

They INSIST their figures are correct. They show the married allowance on the tax calc as a 20% reduction (i.e. £250) against a Nil income tax bill - this would be correct for the tranferee position.

Am I going nuts or have they keyed this incorrectly at their end?  If so, how is that possible if the SA100 tax return as filed is 100% correct in terms of the marriage allowance transfer?

TIA.

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By rmillaree
16th Sep 2021 15:34

"HMRC have not reduced her personal allowance for the marriage allowance transfer so their revised SA tax calc shows no income tax due. Client has paid the amount we advised so HMRC are showing a £20 overpayment."

You are right hmrc are wrong - i am presuming that hmrc have not "actioned" marriage transfer as has been requested. this is only logical answer i can think of other than perhaps the request perhaps was wrong round - hmmmm see below

HMRC staff are incredibly poorly trained and their manuals are incredibly poorly written - the combo of both sometimes ends up with them spouting crapola.

For some reasons the transfer request often just sticks and isnt procesed for 4-6 weeks thats common - so it may sort itself out.

If the claim has been made simply ring hmrc and demand they ensure transfer is done as requested. Its fine and dandy to simply do request on the tax return that is submitted despite what hmrc advisors may say !

ref this bit
"They INSIST their figures are correct. They show the married allowance on the tax calc as a 20% reduction (i.e. £250) against a Nil income tax bill - this would be correct for the tranferee position."

Ok this does seem to confirm that the most likely thing is that the marriage transfer request has been actioned in the wrong direction - luckily if that is the case the receiver needs to throw it back so thankfully you presumably act for the right party out of the two here to cancel and transfer the otehr way.
I wouln't particularly trust anything one helpline advisor would say if their comments don't make sense - you will be unlucky if you get two bad uns in a row.

should be simple enough to ring up and reverse just ensure you have details of receiver handy - date of marriage/ni and dob + name

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By Paul Crowley
16th Sep 2021 16:02

HMRC often send SA 302 Amendment for both Donor and recipient even when the transfer is on the tax return

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RLI
By lionofludesch
16th Sep 2021 19:32

£20? In the taxpayer's favour ? I'd just accept HMRC are right.

They know best. They're the professionals.

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Replying to lionofludesch:
Tornado
By Tornado
16th Sep 2021 23:02

Yes they are the professionals indeed and well paid for it .... some 2000 million pounds by now to get MTD sorted and look what a success that is.

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